PM launches platform for `Transparent Taxation – Honoring the Honest’
13 Aug 2020
Prime Minister Narendra Modi today announced the launch of `Transparent Taxation – Honoring the Honest’, as part of the ongoing reform in the country’s direct tax system.
The Central Board of Direct taxes (CBDT) has been carrying out several major reforms in direct tax system in the recent years. The focus of tax reforms has been on reduction in tax rates and on simplification of tax laws so as to ensure better compliance by the taxpayer.
Last year the government reduced corporate tax rates from 30 per cent to 22 per cent and for new manufacturing units the rates were reduced to 15 per cent. It also abolished tax on dividend distribution.
Several initiatives have been taken by the CBDT for bringing in efficiency and transparency in the functioning of the Income Tax Department.
These include bringing more transparency in official communication through the newly introduced Document Identification Number (DIN) wherein every communication of the department would carry a computer generated unique document identification number. Similarly, to increase the ease of compliance for taxpayers, the IT Department has introduced a system of prefilling income tax returns to make compliance more convenient for individual taxpayers. Compliance norms for startups have also been simplified.
With a view to provide for resolution of pending tax disputes, the I-T Department also brought out the Direct Tax “Vivad se Vishwas Act, 2020” under which declarations for settling disputes are being filed currently. To effectively reduce taxpayer grievances / litigation, the monetary thresholds for filing of departmental appeals in various appellate courts have been raised. Several measures have been taken to promote digital transactions and electronic modes of payment.
The IT department has also made efforts to ease compliances for taxpayers during the Covid times by extending statutory timeliness for filing returns as also releasing refunds expeditiously to increase liquidity in the hands of taxpayers.
The launch of the platform for `Transparent Taxation – Honoring the Honest “will further carry forward the journey of direct tax reforms, a finance ministry release stated.